The Government on Wednesday marginally raised the price of sugarcane-extracted ethanol used for blending in petrol by a little less than Rs 2 per litre to Rs 40.85 from the supply year beginning December 1.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the revision in the price of ethanol paid by state-owned fuel retailers to Rs 40.85 per litre for sugar season 2017-18, an official statement said. GST and transportation charges will also be payable additionally. The revised price will be applicable during ethanol supply period from December 1, 2017 to November 30, 2018.
“The approval will facilitate the continued policy of the Government in providing price stability and remunerative prices for ethanol suppliers,” it said. “It will also help in reducing dependency on crude oil imports, saving in foreign exchange and benefits to the environment.” The Cabinet had in October last year approved a new mechanism for revising price of ethanol used for blending in petrol. The price of ethanol, according to the mechanism, was to be determined on the basis of prevalent price of sugar in the open market as also demand-supply situation.